On 4 November, the first trading day after a public holiday, the Nikkei fell for a third straight day on the Tokyo Stock Exchange. It closed at approximately ¥62,188.63, remaining near a three-month low. Reports that Democrats were expected to win the US midterm elections prompted selling in AI and semiconductor-related stocks.
The Nikkei Stock Average closed on the 4th at ¥62,188.63, down ¥893.23, or 1.42%, from the previous day. The decline eased in subsequent trading, and at one point the index recovered approximately ¥2,000 from its intraday low. The TOPIX also fell for a third straight day, closing at 3,895.38, its lowest level since 12 June. Trading value on the TSE Prime Market was approximately ¥10.8055 trillion, while trading volume was 3.51279 billion shares.
In connection with the US presidential election on the 3rd, reports said Democrats were expected to take back the majority in Congress, prompting selling led by AI and data-center-related stocks. At the same time, as the overall picture became clear, market participants increasingly took the view that the selling catalyst had run its course, and buying back of sold positions was seen in the afternoon.
Among individual stocks, Kyocera, Fujikura and Kioxia declined. Fast Retailing (Fast Retailing) and Mitsubishi Corporation, by contrast, rose. There was also speculation that the outcome of the US midterm elections could change investment trends in the AI sector, and AI and semiconductor-related stocks continued to drive the broader market.